Chapter 1, Problem 25DQ

Jed Clampett is expanding his family-run beer distributorship into Georgia or Tennessee. His parents began the business many years ago and now three generations of Clampetts work in the family business. Jed will relocate the entire family (his parents, spouse, children, etc.) to either state after the move. What types of taxes may influence his decision of where to locate his business? What nontax factors may influence the decision?

Sonya wants to become a Certified Public Accountant. Therefore, she decides to go to college and obtain a degree in accounting. What is the tax treatment of Sonya’s educational expenses? Group of answer choices Sonya may not deduct the educational expenses as a business deduction. Educational Expenses are never allowed a tax deduction. Sonya may deduct the educational expenses because they are required for her to become an accountant. Educational expenses are always allowed a business deduction.

Ray Reyes owns a plumbing business. He went to his tax advisor to figure out what business deductions he can take to minimize his tax liability. Ray Reyes also wanted to know what else he can implement in his business to reduce his taxable income. Currently, Ray has 5 employees who work full time. He pays them a salary and often has referral bonuses for those who bring in new customers. Ray’s company does not provide retirement plans for his employees at this time. Ray recently bought 3 brand new vans for everyday use in his business. He also bought a new Range Rover vehicle that he claims he uses for business purposes. Ray is looking to hire two of his family members, one as an operations manager and one as a plumber. Ray is in the process of buying new equipment and a new building to conduct business and would like to use an accelerated depreciation method for these items. Ray donated $2,500 to a local charity organization in exchange for a printed advertisement of his plumbing…

Tom and Harry are friends. Tom was injured in an accident and received a settlement. He is living off the invested amount from that​ settlement, since he is no longer able to work. Harry is saving money to buy a​ boat, something he has wanted all his life and is anxious to get as soon as he has saved enough to pay for it. Based only on transaction costs​ (not taxes or other​ factors), which of these two investors would fit into a clientele that prefers stocks with high dividend payout ratios over​ non-dividend-paying stocks?     A. We​ can’t say, since the concept of a clientele can be applied only to personal​ taxes, not to transaction costs.     B. ​Harry, saving for a​ boat, is more likely to be in the high dividend clientele.     C. Both are equally likely to fall into this clientele                               D. ​Tom, living off his​ settlement, is more likely to be in the high dividend clientele.

Antonio Lopez has come to you for help filing his 2021 tax return. Antonio has never filed his taxes, as this is his first year on his own. He has decided to seek your assistance this year. Antonio is a bartender, and he also operates a poker and gaming club in his basement. This is not a legal gaming operation, but he feels the income is so small ($15,000 this year) that he will not have to claim the income. Furthermore, he does not have any receipts for this income (it is all cash) and therefore, believes he does not have to claim this as income. He also believes that by claiming the income, he may get in trouble for not having the correct permits to operate the club. He has come to you and asks if he is correct, that he does not have to include the receipts from the gaming club as income. a. Determine how much, if any, of George's gaming receipts need to be included in income. b. Write a memo to communicate your results to your supervisor to include (1) authority list, (2)…

Asshish is a medical doctor and a scientist. He works at a local hospital in the mornings, attending to patients. At lunchtime he takes a train to the local university where he works in a research laboratory. At the end of the day, he takes the train home. Advise Asshish as to the tax deductibility of the train fares. O The train fare from the university to his home will not be deductible as it is a private or domestic expense O The train fare from the university to his home will be deductible as it is necessary to put him in a position to earn the income O The train fare from the university to his home will not be deductible as it is a fringe benefit tax O The train fare from the university to his home will be deductible as it is directly connected to his income exertion

Ali is currently working as a human resource manager for a company and earns a good salary. He is planning to pursue a Master of Business Administration (MBA) degree. He recently received an offer from University A, which included the cost of tuition fees. If Ali decided to go for the MBA study, his company would stop paying his salary. At the same time, if Ali completed his MBA degree, he would earn a higher salary than his current one. Furthermore, Ali has recently purchased an apartment in the city and moved in. For Ali, when considering whether or not to go for the MBA study, the cost of tuition fees is referred to as: a. Incremental revenue. b. None of the given answers. O C. Incremental cost. O d. Opportunity cost. e. Sunk cost. NEXT PAGE AGE MacBook Air DII F8 Q F7 80 F6 F5

Ali is currently working as a human resource manager for a company and earns a good salary. He is planning to pursue a Master of Business Administration (MBA) degree. He recently received an offer from University A, which included the cost of tuition fees. If Ali decided to go for the MBA study, his company would stop paying his salary. At the same time, if Ali completed his MBA degree, he would earn a higher salary than his current one. Furthermore, Ali has recently purchased an apartment in the city and moved in. For Ali, when considering whether or not to go for the MBA study, the cost of tuition fees is referred to as: a. Opportunity cost. O b. Sunk cost. Incremental revenue. O C. d. None of the given answers. O e. Incremental cost.

Ali is currently working as a human resource manager for a company and earns a good salary . He is planning to pursue a Master of Business Administration (MBA ) degree . He recently received an offer from University A, which included the cost of tuition fees. If Ali decided to go for the MBA study , his company would stop paying his salary . At the same time, if Ali completed his MBA degree , he would earn a higher salary than his current one . Furthermore , Ali has recently purchased an apartment in the city and moved in. For Ali , when considering whether or not to go for the MBA study, the cost of the apartment is referred to as: a. Incremental revenue . b. Sunk cost c. of the given answers . d. Incremental cost. e. Opportunity cost .